Kina Securities Limited (ASX:KSL) and Kina Securities (Fiji) Pte Limited entered into share purchase agreement to acquire Westpac Bank-PNG-Limited and Westpac Banking Corporation(Fiji) from Westpac Banking Corporation (ASX:WBC) for approximately AUD 420 million on December 7, 2020. As per the agreement, Kina Securities (Fiji) Pte Limited will acquire 100% in Westpac Banking Corporation(Fiji) and Kina Securities Limited will acquire 89.91% in Westpac Bank-PNG-Limited from Westpac Banking Corporation. Kina Securities Limited will consider making an offer for the acquisition of the shares held by the remaining shareholders in Westpac Bank PNG Limited post the completion. Under the terms of transaction, AUD 315 million will be paid in cash out of which AUD 42 million has been paid as deposit and AUD 273 million will be paid at completion. AUD 60 million of retained earnings in the Westpac Bank-PNG-Limited being paid to Westpac Banking Corporation in AUD 20 million six monthly installments after completion and AUD 45 million earn-out from the Westpac Banking Corporation(Fiji) in two annual installments over the 24 months following completion, subject to business performance hurdles based on actual performance of the Fiji business between 30 June 2020 and 30 June 2021, and between 30 June 2021 and 30 June 2022. AUD 273 million will be funded by combination existing cash reserves (approximately AUD 58 million being AUD 100 million as at 7 December 2020 less the deposit paid), cash flow from ordinary operations and investment from strategic investors including multilateral development banks via tier two subordinated debt facilities and placement of equity. Kina aSecurities Limited has committed to jobs for all local employees of Westpac Bank-PNG-Limited and Westpac Banking Corporation(Fiji). It is not proposed that there will be any changes to the board or senior management as part of acquisition. The transaction is subject to regulatory approval and competition approval both in Papua New Guinea and Fiji and Kina Securities Limited shareholder approval. The Kina Securities Limited will seek shareholder approval of the acquisition at a general meeting to be called in Q1 2021. The process to secure the approvals in Papua New Guinea and Fiji has commenced. As per disclosure of February 5, 2021, subject to the abstentions noted in the Explanatory Memorandum, the Directors of Kina unanimously recommend that shareholders vote in favor of each resolution.

As of April 15, 2021, the shareholders of Kina Securities approved the deal. As of July 26, 2021, the PNG Independent Consumer and Competition Commission is not satisfied that the acquisition will not, or will not likely, have the effect of substantially lessening competition in the relevant markets identified. Final comments and submissions on the draft determination by PNG Independent Consumer and Competition Commission are due by August 20, 2021 and final determination is expected in mid-September of 2021. As of July 29, 2021, Reserve Bank of Fiji given a conditional approval on KSL's application. Reserve Bank of Fiji added that KSL's application to acquire Westpac PNG remains pending at this time due to the likelihood of lessening competition in Papua New Guinea's banking sector, the acquisition of Westpac Fiji will not affect domestic competition as six banks will continue to operate in Fiji. As of July 30, 2021, the transaction has been approved by Fijian Competition & Consumer Commission. FCCC is satisfied that the Transaction will not harm or affect competition in the Fijian market and has therefore granted a conditional approval for the Transaction. The FCCC's approval is granted under the provisions of the FCCC Act 2010. On August 11, 2021, Kina presented a vigorous strategy for the Acquisition to a Predetermination Conference hosted by the PNG Independent Consumer and Competition Commission. As of August 16, 2021, Final written submissions to the ICCC are due by August 20, 2021. The transaction is expected to close by September 30, 2021. The deal is expected to be eps-accretive. Morgans Financial Limited acted as financial adviser and Stephen Massa and Kym Livesley of Dentons Australia Limited acted as legal advisor to Kina on the acquisition. As of September 14, 2021, ICCC has denied authorization to Kina Bank for the proposed acquisition of Westpac's stake in Westpac Bank PNG Limited.

Kina Securities Limited (ASX:KSL) and Kina Securities (Fiji) Pte Limited cancelled the acquisition of Westpac Bank-PNG-Limited and Westpac Banking Corporation(Fiji) from Westpac Banking Corporation (ASX:WBC) on September 22, 2021.